E$19\mathrm{.}19($LO $1,2,4)($Two Temporary Differences, Multiple Rates, Future Taxable Income$)$ Flynn Inc. has two temporary differences at the end of $2022.$ The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Flynn$$s accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows.

$2023202420252026$

Taxable amounts $$40,000$ $$50,000$ $$60,000$ $$90,000$

Deductible amounts $(15,000)(19,000)$

$$40,000$ $$35,000$ $$41,000$ $$90,000$

As of the beginning of $2022,$ the enacted tax rate is $34\%$ for $2022$ and $2023,$ and $38\%$ for $20242027.$ At the beginning of $2022,$ the company had no deferred income taxes on its statement of financial position. Taxable income for $2022$ is $$400,000.$ Taxable income is expected in all future years.

Instructions

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for $2022.$

Indicate how deferred income taxes would be classified on the statement of financial position at the end of $2022.$